More than 348,000 policyholders of Ceylinco Life will receive bonuses totalling a record Rs 1.866 billion in April 2012, as the life insurance leader despatches its annual bonus certificates and rewards long-standing customers with cash bonuses.
Of these recipients, 339,368 policyholders will receive Rs 1.834 billion in the form of bonus certificates which will be mailed by Ceylinco Life from 2nd April onwards. Another 9,088 policyholders, who complete 10, 15 and 20 years with the company will receive Rs 31.9 million in cash bonuses before the Sinhala and Tamil New Year, the company said.
The annual bonuses are in respect of the surplus generated by Ceylinco Lifeâ€™s Life Fund in FY 2011, while the â€˜Avuruduâ€™ cash bonuses represent a practice begun by the company in 2004 to reward loyalty.
â€œAs usual, April will be a month of extra celebration for policyholders of Ceylinco Life,â€ the companyâ€™s Director/Deputy CEO Thushara Ranasinghe said. â€œWe had an exceptionally successful 2011, and this will be reflected in the bonus payout, which once again exceeds our promise to policyholders.â€
This yearâ€™s annual bonus declaration exceeds that of 2011 by Rs 244 million or 15.3 per cent, while the number of recipients has increased by 29,368, Mr. Ranasinghe disclosed.
The companyâ€™s policy of declaring bonuses from the very first year of issue of a policy, enables even a policyholder who obtained a policy in December 2011 to receive a bonus allotment as at 31st December of the same year.
Meanwhile, Ceylinco Lifeâ€™s cash bonuses, in the form of immediately encashable cheques, will be home delivered to eligible policyholders between 7th and 10th April, the company announced.
Policyholders who had completed 20 years as at 31st December 2011 are eligible to receive a cash bonus computed at Rs 75 per Rs 1,000 sum assured. Cash bonuses for those who have completed 15 years are computed at Rs 50 per Rs 1000 sum assured while those who completed 10 years will receive Rs 25 per Rs 1000 sum assured.
Accordingly, a participating policy with a sum assured of Rs. 1 million will be entitled to a cash bonus of Rs 25,000 on completion of 10 years, Rs 50,000 on completion of 15 years and Rs 75,000 on completion of 20 years.
Ceylinco Life ended 2011 with a record Gross Written Premium Income of Rs 9.816 billion and total income of Rs 13.698 billion. The Companyâ€™s Life Fund grew by 19.9 per cent to Rs 38.2 billion as at 31st December 2011. Independently rated as one of the countryâ€™s most valuable brands, Ceylinco Life operates more than 180 branches, the largest branch network among local life insurance companies, and has won multiple international and local awards for its commitment to the community and success in brand equity building.
The companyâ€™s solvency margin, which illustrates its financial strength and ability to honour all claims, stood at eight times the minimum statutory requirement at the end of the 2011 financial year.